Investigating the determinants of experts' tax aggressiveness: Experience and personality traits

Arbeitspapier

This study analyzes how the Big Five personality traits and professional experience affect the aggressiveness of tax preparers' recommendations. To this aim, we conduct a survey among tax professionals of a Big Four accounting firm and tax students. Using treatment-effects regressions, we find that personality traits have direct and indirect effects on tax aggressiveness. The indirect effects are due to a selection effect. Personality traits affect the decision to remain in the organizational environment of the Big Four accounting firm, and the experience in this firm is significantly related to tax aggressiveness. Our data suggest that enhancing work experience at the accounting firm leads to lower tax aggressiveness and that the organizational culture appears to be an important determinant of tax aggressiveness. Moreover, we provide evidence that the danger of potential reputation losses reduces subjects' tax aggressiveness regardless of whether the subject is highly experienced.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: arqus Discussion Paper ; No. 151

Classification and Topics

• Classification: Wirtschaft ; Accounting and Auditing: General ; Accounting ; Business Taxes and Subsidies including sales and value-added (VAT) ; Tax Evasion and Avoidance
• Subject: tax preparers ; tax aggressiveness ; experience ; personality traits ; Big Five ; reputation loss

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blaufus, Kay ; Zinowsky, Tim
• Event: Veröffentlichung
• (who): Arbeitskreis Quantitative Steuerlehre (arqus)
• (where): Berlin
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/88159
• Last update: 10.03.2025, 11:42 AM CET